ND-SESSION
Market settles at one week low as world stocks slide
Key benchmark indices fell for second day in a row weighed by weakness in European and Asian equities and lower US index futures. The S&P BSE Sensex and the 50-unit CNX Nifty, both, settled at their lowest level in one week. The Sensex was down 112.37 points or 0.56%, off 196.43 points from the day's high and up 38.93 points from the day's low. Index heavyweight and cigarette major ITC edged lower. Another index heavyweight Reliance Industries (RIL) also edged lower in choppy trade. The market breadth, indicating the overall health of the market, was weak.
Indian stocks fell for second day in a row today, 21 May 2013. The Sensex fell 174.51 points or 0.86% in two trading sessions from its recent high of 20,286.12 on 17 May 2013. The Sensex has gained 607.43 points or 3.11% in this month so far (till 21 May 2013). The Sensex has gained 684.90 points or 3.53% in calendar 2013 so far (till 21 May 2013). From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 4,362.63 points or 27.7%.
Coming back to today's trade, bank stocks declined. But, ICICI Bank hit 52-week high. Coal India rose on strong Q4 results. L&T declined ahead of its Q4 results tomorrow, 22 May 2013.
Auto stocks fell on profit booking after recent gains. Metal stocks declined. Realty stocks fell for the second straight day. IT stocks rose on recent slew of good economic data in the US, the biggest outsourcing market for the Indian IT firms.
The market hovered between gains and losses in early trade. It slipped into the red from positive terrain in morning trade. It hit fresh intraday low in mid-morning trade. It trimmed losses in early afternoon trade. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty pared gains after hitting their lowest level in nearly a week. Key benchmark indices trimmed losses after falling to fresh intraday low in afternoon trade. It trimmed gains after hitting fresh intraday high in mid-afternoon trade. It extended losses to hit fresh intraday low in late trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 753.37 crore on Monday, 18 May 2013, as per provisional data from the stock exchanges.
The S&P BSE Sensex was down 112.37 points or 0.56% to 20,111.61, its lowest closing level since 14 May 2013. The index fell 151.30 points at the day's low of 20,072.68 in late trade, its lowest level since 15 May 2013. The index rose 84.06 points at the day's high of 20,308.04 in mid-afternoon trade.
The CNX Nifty was down 42.80 points or 0.7% to 6,114.10, its lowest closing level since 14 May 2013. The index hit a high of 6,180.25 in intraday trade. The index hit a low of 6,102.35 in intraday trade, its lowest level since 15 May 2013.
The total turnover on BSE amounted to Rs 1955 crore, lower than Rs 2005.59 crore on Monday¸ 20 May 2013.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,418 shares fell and 922 shares rose. A total of 152 shares were unchanged.
The BSE Mid-Cap index shed 0.62% and the BSE Small-Cap index fell 0.43%.
The BSE IT index (up 0.8%), BSE Teck index (up 0.44%), BSE Consumer Durables index (up 0.01%), BSE Capital Goods index (down 0.33%), BSE FMCG index (down 0.35%), outperformed the Sensex.
The BSE Metal index (down 0.66%) BSE Auto index (down 1.75%), BSE HealthCare index (down 0.85%), BSE Bankex (down 0.88%), BSE Oil & Gas index (down 0.81%), BSE Realty index (down 2.59%), BSE PSU index (down 1%), BSE Power index (down 1.06%) underperformed the Sensex.
Among the 30-share Sensex pack, 20 stocks fell and the rest of them rose.
Index heavyweight Reliance Industries (RIL) dropped 0.63% to Rs 825.65. The stock hit high of Rs 839.50 and low of Rs 825.20.
Index heavyweight and cigarette major ITC declined 0.63% to Rs 332.55. The stock hit high of Rs 335.20 and low of Rs 329. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.
On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.
ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.
Nestle India rose 2.78% to Rs 5,246.30. The stock hit a record high of Rs 5,269 in intraday today, 21 May 2013.
Coal India rose 2.11% on strong Q4 results. The company's net profit jumped 89.66% to Rs 2320.61 crore on 21.1% decline in net sales to Rs 121.93 crore in Q4 March 2013 over Q4 March 2012. Coal India's net profit rose 21.4% to Rs 9794.32 crore on 15.3% decline in net sales to Rs 352.25 crore in the year ended March 2013 over the year ended March 2012. The board of Coal India has recommended a final dividend of Rs 4.30 per share for the financial year ended March 2013. The company announced its Q4 results after market hours on Monday, 20 May 2013.
L&T declined 0.59% ahead of its Q4 results tomorrow, 22 May 2013.
Crompton Greaves jumped 2.99%. The company will announce its year ended March 2013 (FY13) results on 24 May 2013.
Metal stocks declined. Sterlite Industries (India) (down 0.98%), JSW Steel (down 1.42%), Tata Steel (down 2.7%), Sail (down 1.12%), National Aluminium Company (down 1.42%), Hindustan Zinc (down 1.67%) and Jindal Steel & Power (down 1.82%) edged lower. Hindalco Industries rose 0.05%.
Bank stocks declined. HDFC Bank declined 0.26% to Rs 708. The stock had hit a record high of Rs 724 hit in intraday trade on 20 May 2013.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), fell 2.16%.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of Baroda and Punjab National Bank shed by 0.34% to 2.61%.
ICICI Bank rose 0.11% to Rs 1,210. The stock pared gains after hitting 52-week high of Rs 1,234 in intraday trade today, 21 May 2013. The bank after trading hours on 16 May 2013, said it has received an aggregate equity capital repatriation of Canadian dollar 75 million from ICICI Bank Canada, its wholly owned banking subsidiary in Canada. Post the repatriation, the share capital of ICICI Bank Canada is Canadian dollar 857 million and its capital adequacy ratio continues to be strong, ICICI Bank said in a statement.
ICICI Bank said it already has a strong capital adequacy ratio, and the return of capital by the subsidiary will enhance the bank's ability to optimise capital deployment and return on equity. .
IFCI shed 2.68% on poor Q4 results. The company's net profit fell 31.61% to Rs 149.94 crore on 8.24% decline in total income to Rs 735.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Monday, 20 May 2013.
IFCI's net profit fell 32.05% to Rs 450.87 crore on 3.18% decline in total income to Rs 2759.30 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
On consolidated basis, IFCI's net profit declined 25.56% to Rs 532.78 crore on 1.84% growth in total income to Rs 3188.67 crore in FY 2013 over FY 2012.
IFCI's board of directors at a meeting held on Monday, 20 May 2013, recommended dividend of Re 1 per share for FY 2013.
Auto stocks fell on profit booking after recent gains. India's largest car maker by sales, Maruti Suzuki India skidded 2.49% to Rs 1,698.45. The stock had hit record high of Rs 1,773.45 in intraday trade on Monday, 20 May 2013. The stock surged recently on the back of a weakening yen. Weak yen could boost earnings of Maruti Suzuki as it imports raw materials from its Japanese parent Suzuki Motor Corporation. It also pays annual royalty on sales to the Japanese parent.
Mahindra & Mahindra (M&M) fell 1.61% to Rs 987.40. The stock had hit record high of Rs 1,026.45 in intraday trade on Monday, 20 May 2013.
Tata Motors declined 3.06%. The company said on Saturday, 18 May 2013 that TML Holdings, a wholly owned subsidiary of the company, issued and allotted S$350 million in principal amount of 4.25% senior notes due 2018. The net proceeds from the issue will be used for the redemption of preference shares issued to Tata Motors and for general corporate purposes. Australia and New Zealand Banking Group, Citigroup Global Markets Singapore, Deutsche Bank AG, Singapore Branch and Standard Chartered Bank acted as joint lead managers and joint bookrunners for the issue.
This announcement does not constitute nor form a part of any offer or solicitation to purchase or subscribe for securities in Singapore, the United States, India or elsewhere, company said.
Two wheeler markers also dropped. Bajaj Auto shed 0.5%. The company's net profit fell 1% to Rs 766 crore on 4% rise in turnover to Rs 4990 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 1% to Rs 3044 crore on 3% growth in turnover to Rs 20793 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced on 16 May 2013.
Bajaj Auto said that the company's performance in FY 2013 was good in a very difficult year for the automobile industry. The company's strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements in the back-end, has yielded desired results, Bajaj Auto said.
India's largest motorcycle maker by sales, Hero MotoCorp dropped 0.93%. The company said on 1 May 2013 its total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012.
IT stocks rose on recent slew of good economic data in the US, the biggest outsourcing market for the Indian IT firms. Tata Consultancy Services (TCS) rose 1.3%.
HCL Technologies gained 1.11%. The company on 15 May 2013, announced that it has been selected by Husqvarna Group, a global leader in products and solutions for garden, park and forest care as well as construction, as a global strategic partner. HCL will provide comprehensive business transformation services to Husqvarna.
Infosys rose 0.94%. The company announced during market hours on Monday, 20 May 2013 that Robinsons Bank, a growing commercial bank to the Philippines has selected Infosys Finacle as its transformation partner to support its branch network expansion and business growth.
Wipro gained 0.31%. The company on 9 May 2013 said that the Securities & Exchange Board of India (Sebi) has approved its proposal to meet the minimum public shareholding requirement through a transfer of equity shares by the promoter group to an 'Irrevocable Independent Trust' with trustees either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries. Wipro said that the company and the promoter group have undertaken multiple steps to fulfill the minimum public shareholding requirement including Offer for Sale (OFS). The demerger of the 'diversified' business is also expected to increase public shareholding. Any shortfall to meet public shareholding prior to due date of meeting the minimum public shareholding requirement would be transferred to the 'Irrevocable Independent Trust' and the trust shall effect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement, Wipro said.
Tech Mahindra fell 1.48%. The company after market hours today, 21 May 2013 reported 36.8% rise in consolidated net profit to Rs 377 crore on 6.5% rise in revenue to Rs 1907 crore in Q4 March 2013 over Q3 December 2012.
Vineet Nayyar, Executive Vice Chairman of Tech Mahindra said, “I am satisfied that we have delivered profitable growth for FY13, with significant margin improvement. I am confident that with our deep domain expertise in Telecom and a full portfolio of offerings, we would be able to leverage our leadership position to deliver higher value, for all our stakeholders.”
C P Gurnani, Managing Director of Tech Mahindra said, “We are optimistic about FY14, buoyed by our deal pipeline, business traction from recent acquisitions and leverage of business synergies with Mahindra Satyam. Our focus on non-linear growth alternatives like Platforms and Customer co-innovation continues to portend a steady future for us.”
The company's board of directors recommended a dividend of Rs 5 per share for the year ended 31 March 2013.
Oracle Financial Services declined 0.74%. Oracle Global (Mauritius), which is a company duly incorporate under the laws of Mauritius and the promoter of Oracle Financial Services has submitted to BSE a notice of offer for sale of 44.30 lakh shares of the company tomorrow, 22 May 2013 through a sale on the separate window provided by the bourses for this purpose.
Realty stocks fell for the second straight day. Oberoi Realty (down 1.35%), Godrej Properties (down 1.45%), Indiabulls Real Estate (down 1.33%), HDIL (down 4.18%) and Unitech (down 4.13%) dropped.
DLF fell 3.25% to Rs 240. The company said after market hours on Monday, 20 May 2013 that the Equity Issuance Committee of the board of directors of the company has, by a resolution dated 20 May 2013, allotted 8.1 crore shares to successful applicants at an issue price of Rs 230 per share, aggregating to Rs 1863.42 crore, under the institutional placement programme.
Adani Power spurted 12.21% to Rs 60.65 after the company said its promoter has released majority of pledged shares lying with a lender. IDBI Trusteeship Services released 22.31 crore shares pledged shares of Adani Power on 15 May 2013. These shares, accounted for 9.32% shareholding in the company, according to a regulatory filing. Post the release, IDBI Trusteeship Services held 7.08 crore shares, accounting for 2.96% stake in Adani Power.
Shares of Adani Power extended recent gains. The stock is up 29.04% in six trading sessions from a recent low of Rs 47 on 13 May 2013.
JSW Energy fell 4.15%. Sangita Jindal, one of the promoters of JSW Energy has made an offer for sale of 2.82 crore shares held by her in the company tomorrow, 22 May 2013 exclusively through the separate windows provided by the bourses for this purpose. The sale will commence at 9:15 IST and will close at 15:30 IST on 22 May 2013.
Divi's Laboratories tumbled 7.89% on weak Q4 results. The company's consolidated net profit fell 16.75% to Rs 180.57 crore on 7.94% decline in total income to Rs 665.10 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Monday, 20 May 2013.
Divi's Laboratories' consolidated net profit rose 12.89% to Rs 602.01 crore on 14.04% growth in total income to Rs 2189.65 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
Divi's Laboratories' said that in FY 2013, the addition to fixed assets amounted to Rs 248 crore. In addition, an amount of Rs 303 crore is carried forward as capital work in process (WIP) for the capital works under execution, the company said.
During the year, the company's unit-II facility was successfully inspected by TGA, Australia (GMP), USFDA for Nutraceutical facility, USFDA for API site (pre-approval and Cgmp), Slovenian Medicines Agency (EU GMP inspection for 7 APIs), Divi's Laboratories said in a statement.
Divi's Laboratories' board of directors at a meeting held on Monday, 20 May 2013, recommended dividend of Rs 15 per share for FY 2013.
Akzo Nobel India surged 7.47% at Rs 1,125.60 after the company's board of directors at its meeting held on 20 May 2013 recommended a dividend of Rs 20 per share plus a special dividend of Rs 60 per share for the financial year ended 31 March 2013. Akzo Nobel India declared total dividend of Rs 80 per share for the year ended 31 March 2013. The announcement was made after trading hours on Monday, 20 May 2013. The company had paid dividend of Rs 20 per share in the year ended 31 March 2012.
Akzo Nobel India's net profit fell 20.1% to Rs 62.50 crore on 43.8% fall in net sales to Rs 524.67 crore in Q4 March 2013 over Q4 March 2012. The company's net profit rose 8.4% to Rs 218.83 crore on 12.2% rise in net sales to Rs 2179.74 crore in the year ended 31 March 2013 over the year ended 31 March 2012.
Commenting on results, Amit Jain, Managing Director, Akzo Nobel India said, “Akzo Nobel India is well positioned to harness its potential as a leading coatings company. In the face of challenging industry conditions in FY 2012-13, a PBT growth of 13% is a pointer to the inherent strengths of the company as an integrated coatings provider.”
“New businesses such as ‘Wood Finishes and Adhesives' were launched this year and crucial capacities added. We continue to invest in growth, focusing on developing people capabilities, leveraging AkzoNobel's global R&D for launching innovative products and on expanding the distribution reach for multiple businesses.”
Hotel Leelaventure declined 4.15% on reverse turnaround in Q4 results. The company reported net loss of Rs 142.17 crore in Q4 March 2013, as against net profit of Rs 209.66 crore in Q4 March 2012. Total income from operations (net) rose 44.01% to Rs 200.63 crore in Q4 March 2013 over Q4 March 2012.
Hotel Leelaventure reported net loss of Rs 433.46 crore in the year ended 31 March 2013 (FY 2013), as against net profit of Rs 18.63 crore in the year ended 31 March 2012. Total income from operations (net) rose 14.34% to Rs 653.86 crore in FY 2013 over FY 2012.
On consolidated basis, Hotel Leelaventure reported net loss of Rs 433.49 crore in FY 2013, as against net profit of Rs 18.62 crore in FY 2012. Total income from operations (net) rose 14.34% to Rs 653.86 crore in FY 2013 over FY 2012. The operational profit before interest and depreciation has substantially increased to Rs 112.66 crore in FY 2013, from Rs 18.57 crore in FY 2012, a six fold surge YoY. The increase in the revenue and operating profit has come mainly from the The Leela Palace, Delhi which is steadily improving performance and from The Leela, Goa, the company said in a statement.
The Leela Palace, Chennai with 326 rooms commenced its operations in January 2013 and is expected to contribute significantly to the company's revenue and operational profit in FY 2014, Hotel Leelaventure said in a statement.
The company has a total debt of Rs 4602 crore as on 31 March 2013 mainly on account of capital expenditure incurred to set up the Udaipur, Delhi and Chennai hotels, apart from acquiring plots at Agra, Pune and Bangalore, next to The Leela Palace, Hotel Leelaventure said in a statement.
Hotel Leelaventure said it has met its debt service obligations to the lenders during the year, in line with the approved CDR package and is making all efforts to meet the debt service obligations in the current year also by monetization of the non-core assets and stake sale in one or two of its Hotel properties, retaining the operational management. Consequently, the interest burden would be substantially lower from FY 2014-15 onwards, the company said. Hotel Leelaventure said it has signed a Management Contract for managing hotel at Bhartiya City in Bangalore and a memorandum of understanding (MoU) for managing a hotel in Noida being developed by Supertech Group. The company said that it is in discussions with several other developers for managing their hotels in various locations in India and overseas. Hotel Leelaventure said it continues to follow this asset light strategy for future growth.
Dish TV India rose 2.48%. The company will announce its FY13 results on 23 May 2013.
As per the Q4 results calendar, L&T unveils Q4 results tomorrow, 22 May 2013. Tata Steel, State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results on Thursday, 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, Power Grid Corporation of India, DLF, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, Cipla, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
Global credit rating agency Standard & Poor's (S&P) on Friday, 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
European stock markets were mostly lower on Tuesday, taking a breather after climbing to multiyear highs in the prior day's session. Key benchmark indices in France and Germany were down by 0.31% to 0.32%. UK's FTSE 100 rose 0.14%.
UK's inflation slowed more than economists forecast in April to a seven-month low and producer prices rose the least since 2009 as fuel costs fell. Consumer prices rose 2.4% from a year earlier, compared with 2.8% in March, the Office for National Statistics said in London today.
Most Asian stocks fell on Tuesday from a five-year high as investors weighed the pace of Federal Reserve stimulus efforts. Key benchmark indices in Indonesia, Hong Kong, Singapore and South Korea fell by 0.07% to 0.54%. Key benchmark indices in China, Japan and Taiwan rose by 0.07% to 0.22%.
Japan's Economy Minister Akira Amari said in Tokyo today that the overly strong yen is in the process of being corrected and he hopes the exchange rate settles at a level suited to the nation's economic fundamentals.
Trading in US index futures indicated that the Dow could fall 14 points at the opening bell on Tuesday, 21 May 2013. US stocks took a breather from their recent rally Monday, as declines in some of the year's best-performing sectors weighed on benchmarks.
Chicago Federal Reserve President Charles Evans said yesterday the U.S. economy is "improving quite a lot." Investors are looking ahead to Wednesday, 22 May 2013, when Federal Reserve Chairman Ben Bernanke will testify to Congress and the Fed will release the minutes of its most recent policy-setting meeting.
Indian stocks fell for second day in a row today, 21 May 2013. The Sensex fell 174.51 points or 0.86% in two trading sessions from its recent high of 20,286.12 on 17 May 2013. The Sensex has gained 607.43 points or 3.11% in this month so far (till 21 May 2013). The Sensex has gained 684.90 points or 3.53% in calendar 2013 so far (till 21 May 2013). From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 4,362.63 points or 27.7%.
Coming back to today's trade, bank stocks declined. But, ICICI Bank hit 52-week high. Coal India rose on strong Q4 results. L&T declined ahead of its Q4 results tomorrow, 22 May 2013.
Auto stocks fell on profit booking after recent gains. Metal stocks declined. Realty stocks fell for the second straight day. IT stocks rose on recent slew of good economic data in the US, the biggest outsourcing market for the Indian IT firms.
The market hovered between gains and losses in early trade. It slipped into the red from positive terrain in morning trade. It hit fresh intraday low in mid-morning trade. It trimmed losses in early afternoon trade. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty pared gains after hitting their lowest level in nearly a week. Key benchmark indices trimmed losses after falling to fresh intraday low in afternoon trade. It trimmed gains after hitting fresh intraday high in mid-afternoon trade. It extended losses to hit fresh intraday low in late trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 753.37 crore on Monday, 18 May 2013, as per provisional data from the stock exchanges.
The S&P BSE Sensex was down 112.37 points or 0.56% to 20,111.61, its lowest closing level since 14 May 2013. The index fell 151.30 points at the day's low of 20,072.68 in late trade, its lowest level since 15 May 2013. The index rose 84.06 points at the day's high of 20,308.04 in mid-afternoon trade.
The CNX Nifty was down 42.80 points or 0.7% to 6,114.10, its lowest closing level since 14 May 2013. The index hit a high of 6,180.25 in intraday trade. The index hit a low of 6,102.35 in intraday trade, its lowest level since 15 May 2013.
The total turnover on BSE amounted to Rs 1955 crore, lower than Rs 2005.59 crore on Monday¸ 20 May 2013.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,418 shares fell and 922 shares rose. A total of 152 shares were unchanged.
The BSE Mid-Cap index shed 0.62% and the BSE Small-Cap index fell 0.43%.
The BSE IT index (up 0.8%), BSE Teck index (up 0.44%), BSE Consumer Durables index (up 0.01%), BSE Capital Goods index (down 0.33%), BSE FMCG index (down 0.35%), outperformed the Sensex.
The BSE Metal index (down 0.66%) BSE Auto index (down 1.75%), BSE HealthCare index (down 0.85%), BSE Bankex (down 0.88%), BSE Oil & Gas index (down 0.81%), BSE Realty index (down 2.59%), BSE PSU index (down 1%), BSE Power index (down 1.06%) underperformed the Sensex.
Among the 30-share Sensex pack, 20 stocks fell and the rest of them rose.
Index heavyweight Reliance Industries (RIL) dropped 0.63% to Rs 825.65. The stock hit high of Rs 839.50 and low of Rs 825.20.
Index heavyweight and cigarette major ITC declined 0.63% to Rs 332.55. The stock hit high of Rs 335.20 and low of Rs 329. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.
On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.
ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.
Nestle India rose 2.78% to Rs 5,246.30. The stock hit a record high of Rs 5,269 in intraday today, 21 May 2013.
Coal India rose 2.11% on strong Q4 results. The company's net profit jumped 89.66% to Rs 2320.61 crore on 21.1% decline in net sales to Rs 121.93 crore in Q4 March 2013 over Q4 March 2012. Coal India's net profit rose 21.4% to Rs 9794.32 crore on 15.3% decline in net sales to Rs 352.25 crore in the year ended March 2013 over the year ended March 2012. The board of Coal India has recommended a final dividend of Rs 4.30 per share for the financial year ended March 2013. The company announced its Q4 results after market hours on Monday, 20 May 2013.
L&T declined 0.59% ahead of its Q4 results tomorrow, 22 May 2013.
Crompton Greaves jumped 2.99%. The company will announce its year ended March 2013 (FY13) results on 24 May 2013.
Metal stocks declined. Sterlite Industries (India) (down 0.98%), JSW Steel (down 1.42%), Tata Steel (down 2.7%), Sail (down 1.12%), National Aluminium Company (down 1.42%), Hindustan Zinc (down 1.67%) and Jindal Steel & Power (down 1.82%) edged lower. Hindalco Industries rose 0.05%.
Bank stocks declined. HDFC Bank declined 0.26% to Rs 708. The stock had hit a record high of Rs 724 hit in intraday trade on 20 May 2013.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), fell 2.16%.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of Baroda and Punjab National Bank shed by 0.34% to 2.61%.
ICICI Bank rose 0.11% to Rs 1,210. The stock pared gains after hitting 52-week high of Rs 1,234 in intraday trade today, 21 May 2013. The bank after trading hours on 16 May 2013, said it has received an aggregate equity capital repatriation of Canadian dollar 75 million from ICICI Bank Canada, its wholly owned banking subsidiary in Canada. Post the repatriation, the share capital of ICICI Bank Canada is Canadian dollar 857 million and its capital adequacy ratio continues to be strong, ICICI Bank said in a statement.
ICICI Bank said it already has a strong capital adequacy ratio, and the return of capital by the subsidiary will enhance the bank's ability to optimise capital deployment and return on equity. .
IFCI shed 2.68% on poor Q4 results. The company's net profit fell 31.61% to Rs 149.94 crore on 8.24% decline in total income to Rs 735.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Monday, 20 May 2013.
IFCI's net profit fell 32.05% to Rs 450.87 crore on 3.18% decline in total income to Rs 2759.30 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
On consolidated basis, IFCI's net profit declined 25.56% to Rs 532.78 crore on 1.84% growth in total income to Rs 3188.67 crore in FY 2013 over FY 2012.
IFCI's board of directors at a meeting held on Monday, 20 May 2013, recommended dividend of Re 1 per share for FY 2013.
Auto stocks fell on profit booking after recent gains. India's largest car maker by sales, Maruti Suzuki India skidded 2.49% to Rs 1,698.45. The stock had hit record high of Rs 1,773.45 in intraday trade on Monday, 20 May 2013. The stock surged recently on the back of a weakening yen. Weak yen could boost earnings of Maruti Suzuki as it imports raw materials from its Japanese parent Suzuki Motor Corporation. It also pays annual royalty on sales to the Japanese parent.
Mahindra & Mahindra (M&M) fell 1.61% to Rs 987.40. The stock had hit record high of Rs 1,026.45 in intraday trade on Monday, 20 May 2013.
Tata Motors declined 3.06%. The company said on Saturday, 18 May 2013 that TML Holdings, a wholly owned subsidiary of the company, issued and allotted S$350 million in principal amount of 4.25% senior notes due 2018. The net proceeds from the issue will be used for the redemption of preference shares issued to Tata Motors and for general corporate purposes. Australia and New Zealand Banking Group, Citigroup Global Markets Singapore, Deutsche Bank AG, Singapore Branch and Standard Chartered Bank acted as joint lead managers and joint bookrunners for the issue.
This announcement does not constitute nor form a part of any offer or solicitation to purchase or subscribe for securities in Singapore, the United States, India or elsewhere, company said.
Two wheeler markers also dropped. Bajaj Auto shed 0.5%. The company's net profit fell 1% to Rs 766 crore on 4% rise in turnover to Rs 4990 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 1% to Rs 3044 crore on 3% growth in turnover to Rs 20793 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced on 16 May 2013.
Bajaj Auto said that the company's performance in FY 2013 was good in a very difficult year for the automobile industry. The company's strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements in the back-end, has yielded desired results, Bajaj Auto said.
India's largest motorcycle maker by sales, Hero MotoCorp dropped 0.93%. The company said on 1 May 2013 its total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012.
IT stocks rose on recent slew of good economic data in the US, the biggest outsourcing market for the Indian IT firms. Tata Consultancy Services (TCS) rose 1.3%.
HCL Technologies gained 1.11%. The company on 15 May 2013, announced that it has been selected by Husqvarna Group, a global leader in products and solutions for garden, park and forest care as well as construction, as a global strategic partner. HCL will provide comprehensive business transformation services to Husqvarna.
Infosys rose 0.94%. The company announced during market hours on Monday, 20 May 2013 that Robinsons Bank, a growing commercial bank to the Philippines has selected Infosys Finacle as its transformation partner to support its branch network expansion and business growth.
Wipro gained 0.31%. The company on 9 May 2013 said that the Securities & Exchange Board of India (Sebi) has approved its proposal to meet the minimum public shareholding requirement through a transfer of equity shares by the promoter group to an 'Irrevocable Independent Trust' with trustees either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries. Wipro said that the company and the promoter group have undertaken multiple steps to fulfill the minimum public shareholding requirement including Offer for Sale (OFS). The demerger of the 'diversified' business is also expected to increase public shareholding. Any shortfall to meet public shareholding prior to due date of meeting the minimum public shareholding requirement would be transferred to the 'Irrevocable Independent Trust' and the trust shall effect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement, Wipro said.
Tech Mahindra fell 1.48%. The company after market hours today, 21 May 2013 reported 36.8% rise in consolidated net profit to Rs 377 crore on 6.5% rise in revenue to Rs 1907 crore in Q4 March 2013 over Q3 December 2012.
Vineet Nayyar, Executive Vice Chairman of Tech Mahindra said, “I am satisfied that we have delivered profitable growth for FY13, with significant margin improvement. I am confident that with our deep domain expertise in Telecom and a full portfolio of offerings, we would be able to leverage our leadership position to deliver higher value, for all our stakeholders.”
C P Gurnani, Managing Director of Tech Mahindra said, “We are optimistic about FY14, buoyed by our deal pipeline, business traction from recent acquisitions and leverage of business synergies with Mahindra Satyam. Our focus on non-linear growth alternatives like Platforms and Customer co-innovation continues to portend a steady future for us.”
The company's board of directors recommended a dividend of Rs 5 per share for the year ended 31 March 2013.
Oracle Financial Services declined 0.74%. Oracle Global (Mauritius), which is a company duly incorporate under the laws of Mauritius and the promoter of Oracle Financial Services has submitted to BSE a notice of offer for sale of 44.30 lakh shares of the company tomorrow, 22 May 2013 through a sale on the separate window provided by the bourses for this purpose.
Realty stocks fell for the second straight day. Oberoi Realty (down 1.35%), Godrej Properties (down 1.45%), Indiabulls Real Estate (down 1.33%), HDIL (down 4.18%) and Unitech (down 4.13%) dropped.
DLF fell 3.25% to Rs 240. The company said after market hours on Monday, 20 May 2013 that the Equity Issuance Committee of the board of directors of the company has, by a resolution dated 20 May 2013, allotted 8.1 crore shares to successful applicants at an issue price of Rs 230 per share, aggregating to Rs 1863.42 crore, under the institutional placement programme.
Adani Power spurted 12.21% to Rs 60.65 after the company said its promoter has released majority of pledged shares lying with a lender. IDBI Trusteeship Services released 22.31 crore shares pledged shares of Adani Power on 15 May 2013. These shares, accounted for 9.32% shareholding in the company, according to a regulatory filing. Post the release, IDBI Trusteeship Services held 7.08 crore shares, accounting for 2.96% stake in Adani Power.
Shares of Adani Power extended recent gains. The stock is up 29.04% in six trading sessions from a recent low of Rs 47 on 13 May 2013.
JSW Energy fell 4.15%. Sangita Jindal, one of the promoters of JSW Energy has made an offer for sale of 2.82 crore shares held by her in the company tomorrow, 22 May 2013 exclusively through the separate windows provided by the bourses for this purpose. The sale will commence at 9:15 IST and will close at 15:30 IST on 22 May 2013.
Divi's Laboratories tumbled 7.89% on weak Q4 results. The company's consolidated net profit fell 16.75% to Rs 180.57 crore on 7.94% decline in total income to Rs 665.10 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Monday, 20 May 2013.
Divi's Laboratories' consolidated net profit rose 12.89% to Rs 602.01 crore on 14.04% growth in total income to Rs 2189.65 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
Divi's Laboratories' said that in FY 2013, the addition to fixed assets amounted to Rs 248 crore. In addition, an amount of Rs 303 crore is carried forward as capital work in process (WIP) for the capital works under execution, the company said.
During the year, the company's unit-II facility was successfully inspected by TGA, Australia (GMP), USFDA for Nutraceutical facility, USFDA for API site (pre-approval and Cgmp), Slovenian Medicines Agency (EU GMP inspection for 7 APIs), Divi's Laboratories said in a statement.
Divi's Laboratories' board of directors at a meeting held on Monday, 20 May 2013, recommended dividend of Rs 15 per share for FY 2013.
Akzo Nobel India surged 7.47% at Rs 1,125.60 after the company's board of directors at its meeting held on 20 May 2013 recommended a dividend of Rs 20 per share plus a special dividend of Rs 60 per share for the financial year ended 31 March 2013. Akzo Nobel India declared total dividend of Rs 80 per share for the year ended 31 March 2013. The announcement was made after trading hours on Monday, 20 May 2013. The company had paid dividend of Rs 20 per share in the year ended 31 March 2012.
Akzo Nobel India's net profit fell 20.1% to Rs 62.50 crore on 43.8% fall in net sales to Rs 524.67 crore in Q4 March 2013 over Q4 March 2012. The company's net profit rose 8.4% to Rs 218.83 crore on 12.2% rise in net sales to Rs 2179.74 crore in the year ended 31 March 2013 over the year ended 31 March 2012.
Commenting on results, Amit Jain, Managing Director, Akzo Nobel India said, “Akzo Nobel India is well positioned to harness its potential as a leading coatings company. In the face of challenging industry conditions in FY 2012-13, a PBT growth of 13% is a pointer to the inherent strengths of the company as an integrated coatings provider.”
“New businesses such as ‘Wood Finishes and Adhesives' were launched this year and crucial capacities added. We continue to invest in growth, focusing on developing people capabilities, leveraging AkzoNobel's global R&D for launching innovative products and on expanding the distribution reach for multiple businesses.”
Hotel Leelaventure declined 4.15% on reverse turnaround in Q4 results. The company reported net loss of Rs 142.17 crore in Q4 March 2013, as against net profit of Rs 209.66 crore in Q4 March 2012. Total income from operations (net) rose 44.01% to Rs 200.63 crore in Q4 March 2013 over Q4 March 2012.
Hotel Leelaventure reported net loss of Rs 433.46 crore in the year ended 31 March 2013 (FY 2013), as against net profit of Rs 18.63 crore in the year ended 31 March 2012. Total income from operations (net) rose 14.34% to Rs 653.86 crore in FY 2013 over FY 2012.
On consolidated basis, Hotel Leelaventure reported net loss of Rs 433.49 crore in FY 2013, as against net profit of Rs 18.62 crore in FY 2012. Total income from operations (net) rose 14.34% to Rs 653.86 crore in FY 2013 over FY 2012. The operational profit before interest and depreciation has substantially increased to Rs 112.66 crore in FY 2013, from Rs 18.57 crore in FY 2012, a six fold surge YoY. The increase in the revenue and operating profit has come mainly from the The Leela Palace, Delhi which is steadily improving performance and from The Leela, Goa, the company said in a statement.
The Leela Palace, Chennai with 326 rooms commenced its operations in January 2013 and is expected to contribute significantly to the company's revenue and operational profit in FY 2014, Hotel Leelaventure said in a statement.
The company has a total debt of Rs 4602 crore as on 31 March 2013 mainly on account of capital expenditure incurred to set up the Udaipur, Delhi and Chennai hotels, apart from acquiring plots at Agra, Pune and Bangalore, next to The Leela Palace, Hotel Leelaventure said in a statement.
Hotel Leelaventure said it has met its debt service obligations to the lenders during the year, in line with the approved CDR package and is making all efforts to meet the debt service obligations in the current year also by monetization of the non-core assets and stake sale in one or two of its Hotel properties, retaining the operational management. Consequently, the interest burden would be substantially lower from FY 2014-15 onwards, the company said. Hotel Leelaventure said it has signed a Management Contract for managing hotel at Bhartiya City in Bangalore and a memorandum of understanding (MoU) for managing a hotel in Noida being developed by Supertech Group. The company said that it is in discussions with several other developers for managing their hotels in various locations in India and overseas. Hotel Leelaventure said it continues to follow this asset light strategy for future growth.
Dish TV India rose 2.48%. The company will announce its FY13 results on 23 May 2013.
As per the Q4 results calendar, L&T unveils Q4 results tomorrow, 22 May 2013. Tata Steel, State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results on Thursday, 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, Power Grid Corporation of India, DLF, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, Cipla, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
Global credit rating agency Standard & Poor's (S&P) on Friday, 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
European stock markets were mostly lower on Tuesday, taking a breather after climbing to multiyear highs in the prior day's session. Key benchmark indices in France and Germany were down by 0.31% to 0.32%. UK's FTSE 100 rose 0.14%.
UK's inflation slowed more than economists forecast in April to a seven-month low and producer prices rose the least since 2009 as fuel costs fell. Consumer prices rose 2.4% from a year earlier, compared with 2.8% in March, the Office for National Statistics said in London today.
Most Asian stocks fell on Tuesday from a five-year high as investors weighed the pace of Federal Reserve stimulus efforts. Key benchmark indices in Indonesia, Hong Kong, Singapore and South Korea fell by 0.07% to 0.54%. Key benchmark indices in China, Japan and Taiwan rose by 0.07% to 0.22%.
Japan's Economy Minister Akira Amari said in Tokyo today that the overly strong yen is in the process of being corrected and he hopes the exchange rate settles at a level suited to the nation's economic fundamentals.
Trading in US index futures indicated that the Dow could fall 14 points at the opening bell on Tuesday, 21 May 2013. US stocks took a breather from their recent rally Monday, as declines in some of the year's best-performing sectors weighed on benchmarks.
Chicago Federal Reserve President Charles Evans said yesterday the U.S. economy is "improving quite a lot." Investors are looking ahead to Wednesday, 22 May 2013, when Federal Reserve Chairman Ben Bernanke will testify to Congress and the Fed will release the minutes of its most recent policy-setting meeting.
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